Shares of Coinbase and MicroStrategy also suffered today as cryptocurrencies and global financial markets look forward to the next Fed meeting.
The cryptocurrency market is losing $1 trillion.
Bitcoin, Ethereum and other major assets fell on Tuesday in what is expected to be a volatile week for the global cryptocurrency and financial markets. Bitcoin is trading around $21,000 after falling 4.9%, while Ethereum fell to $1,390 after falling 9.1%, according to data from CoinGecko.
Many other Ethereum-related assets, including Lido’s LDO token, Convex Finance’s CVX, Uniswap’s UNI, and Polygon’s MATIC, have posted double-digit losses in the last 24 hours, casting doubt on the strength of the so-called “merger trade.” the long-awaited Ethereum Proof-of-Stake update is approaching.
Markets brace for volatility
This decline comes as several busy days for the financial markets are approaching. Alphabet and Microsoft are due to report their second quarter results, and Meta will report earnings for the same period tomorrow. On Thursday, both Amazon and Apple will publish their results. Traders will be keeping a close eye on the performance of big tech companies over the next few days as they may provide insight into the state of the economy. Tesla reported last week that it cut its bitcoin holdings by 75% in the second quarter, most likely selling its holdings at a loss.
Markets are gearing up for today’s meeting of the Federal Open Market Committee. Fed Chairman Jerome Powell is expected to announce a 75 basis point rate hike as the central bank seeks to curb skyrocketing inflation in the United States; The recent rate hike by the Fed has caused the market to crash as investors seek to avert risk. The Bureau of Economic Analysis data on US GDP for the second quarter of the year is also due on Thursday, which could increase signs of an impending recession if the US economy shows further contraction.
After yesterday’s fall, the total value of the cryptocurrency market has once again fallen below $1 trillion. The global cryptocurrency market capitalization is about $996 billion, which is almost 70% below its peak value in November 2021.
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